Managing procurement efficiency in state enterprises: a case of national enterprises corporation

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Date

2014-01

Journal Title

Journal ISSN

Volume Title

Publisher

Kyambogo University[unpublished work]

Abstract

The study was centered on managing factors that affect procurement efficiency in state owned enterprises using a case study of National Enterprise Corporation (NEC) with a scope limited to internal factors. The study was guided by the three objectives that is, to identify internal procurement process factors that can drive procurement efficiency at the same time meeting compliance levels, to examine the challenges of driving out efficiency amidst competition from private owned businesses and to evaluate management strategies that can be undertaken to enhance procurement efficiency. A cross-sectional research design was used for the study since data was collected as single point in time and this enabled the researcher to collect detailed and in-depth data from NEC staff. The researcher used questionnaire and interview guide to collect data from the respondents and the sample size of 91 respondents was selected. The findings of the study revealed that effective accountability; adherence to procurement ethics and regulations; skills and competence of staff have a direct bearing on procurement efficiency. That manipulation of contract awards, transparency problems renders procurement process inefficient. It was noted that inflexible procurement regulations and political interferences, competition, lack of transparency, social externalities, Information Communication Technology (ICT) problems, rapid changes in public procurement requirements and underutilization of assets compromise efficiency in procurement. It was noted that improvement in accountability, uphold the element of integrity, adherence to PPDA regulation and compliance, observing procurement ethics can improve procurement efficiency. It can therefore be concluded that internal procurement factors affect greatly procurement efficiency by 75 .5%. The study recommends that internal factors affecting procurement function should be improved to ensure efficiency. Management of NEC should request for accreditation of alternative public procurement and disposal system (PPDA Regulation 342) to mitigate delays in the procurement process as well as adopt ICT to facilitate e-procurement, procuring directly from manufactures, and develop collaborative buyer-seller relationships,

Description

x,106p

Keywords

Procurement efficiency., State enterprises., Managing.

Citation

Buhanda, Brian(2014) Managing procurement efficiency in state enterprises: a case of national enterprises corporation